Securities Code: 002418 Securities Abbreviation: Kangsheng Shares Announcement No.: 2026-024
Zhejiang Kangsheng Co., Ltd. Announcement on Changes to Accounting Policies
The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.
Special Reminder: Zhejiang Kangsheng Co., Ltd. (hereinafter referred to as the "Company") has made corresponding changes to its accounting policies in accordance with the requirements of the "Interpretation No. 19 of the Enterprise Accounting Standards" (hereinafter referred to as "Interpretation No. 19") issued by the Ministry of Finance of the People's Republic of China (hereinafter referred to as the "Ministry of Finance"). These changes will not affect the Company's financial position, operating results, and cash flows. This change in accounting policies does not require submission to the Company's Board of Directors and Shareholders' Meeting for deliberation.
I. Overview of Changes in Accounting Policies
- Reason for Change in Accounting Policies In December 2025, the Ministry of Finance issued "Interpretation No. 19" (Cai Kuai [2025] No. 32), which provides interpretations on "Accounting Treatment for Compensatory Assets in Business Combinations Not Under Common Control," "Accounting Treatment for Related Capital Reserve When Disposing of Subsidiaries Previously Acquired Through Business Combinations Under Common Control," "Derecognition of Financial Liabilities Settled by Electronic Payment Systems," "Assessment of Contractual Cash Flow Characteristics of Financial Assets and Related Disclosures," and "Disclosure of Equity Instruments Designated at Fair Value Through Other Comprehensive Income." It stipulates that these interpretations will be implemented from January 1, 2026.